Star Industries, Inc. v. Bacardi & Co., Ltd.

412 F.3d 373 (2005)

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Star Industries, Inc. v. Bacardi & Co., Ltd.

United States Court of Appeals for the Second Circuit
412 F.3d 373 (2005)

  • Written by Philip Glass, JD
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Facts

Star Industries, Inc. (Star) (plaintiff) began to develop an orange-flavored vodka as part of its Georgi brand in June 1996. Seeking to maximize consumer interest, Star designed a logo that blended the ordinary Georgi label with an elliptical, orange-colored letter “O.” At the time, no other company had created such a design for an orange-flavored liquor. Star expected that this design would evoke an association with the successful Stolichnaya brand of flavored vodkas called “Stoli O,” with the hope that purchasers would call it “Georgi O.” However, purchasers never took to calling the beverage Georgi O. Starting in 2000, Bacardi & Co., Ltd. (Bacardi) (defendant) formulated an orange-flavored rum called Bacardi O, which entered the United States market in 2001. Bacardi developed a label for the beverage consisting of an elliptical “O” placed below the traditional company logo. The color and shape of the elliptical “O” differed somewhat from Star’s “O.” Having learned of this, Star sent a cease-and-desist letter to Bacardi in September 2001. Star sued Bacardi in May 2002 but did not apply to register its design until June 2003. The district court ruled against Star, finding the design not qualified for trademark status. Additionally, the district court found a low likelihood of confusion between Star’s and Bacardi’s designs. Nevertheless, the United States Patent and Trademark Office granted trademark protection to Star’s “O” design in 2004.

Rule of Law

Issue

Holding and Reasoning (Pooler, J.)

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